Early results have not been as positive as hoped, with growth
still stagnant and inflation stubbornly low in areas with NIRP,
according to Oliver Harvey, chief strategist at Deutsche Bank.

"The challenge for most policymakers is getting unconventional
monetary policy to help economies escape from a liquidity trap,
with record low interest rates failing to generate much in the
way of inflation or growth," Harvey wrote in a note to clients.

"There is one exception, however."

Sweden.

Sweden is in the middle of the pack when it comes to G10
countries with negative rates. At -0.5%, the benchmark repo rate
is higher than benchmark rates in Switzerland and Denmark,
but lower than rates in Japan and the Eurozone.

Harvey does highlight a problem: In terms of inflation, negative
rates may become too much of a good thing.

"The [market] is currently pricing negative rates
until 2018, yet the output gap may have completely closed and a
sharp rally in oil could quickly see CPIF, the inflation measure
the Board increasingly talk about, above target," wrote Harvey.

In this case, the Riksbank (Sweden's central bank) would have to
hike incredibly quickly and surprise the market, which is not an
ideal outcome.

There may be some long-term dangers — the
housing bubble forming in the country is one worry — but
so far Sweden is the poster child for negative interest rate
success.